George R. Roberts, Co-Founder of KKR and Co-Chairman of KPEs Managing
Partners Board of Directors, commented, As the decline in KPEs
quarterly NAV evidences, some of our investments faced reduced valuations
during the third quarter as a result of the extraordinary turbulence in
the global capital markets. We are
redoubling our already extensive efforts to improve the operations of our
companies in anticipation of a weaker economic environment. The vast majority of our companies continue
to perform well - growing revenues, growing EBITDA, increasing margins and
paying down debt - due to our continuous focus on long term value
creation.

Results of Operations

Operating results of KPE for the quarter ended September 30, 2008
are highlighted as follows:

·Net unrealized depreciation on
investments and foreign currency transactions was $649.0 million. The most significant changes in the
unrealized fair value of investments from June 30, 2008 to September 30,
2008 were:

·

A decrease of $132.8 million in the value of the investment in Energy
Future Holdings Corp. (EFH), which was marked from 1.4 times cost as of
June 30, 2008 to 1.0 times as of September 30, 2008;

·

A net decrease of $95.4 million in the value of the investment in NXP
B.V. (NXP), which was marked on a U.S. dollar basis from 0.9 times cost as
of June 30, 2008 to 0.5 times as of September 30, 2008, and the
related foreign currency exchange contract;

·

A decrease of $81.2 million in the value of the investment in Aero
Technical Support & Services S.à r.l. (ACTS), which was marked on
both a Canadian dollar and U.S. dollar basis from 0.7 times cost as of
June 30, 2008 to nil as of September 30, 2008;

·

A decrease of $62.9 million in the value of the convertible senior
note investment in Sun Microsystems, Inc. (Sun);

·

A net decrease of $45.7 million in the value of the investment in
KION Group GmbH (KION), which was marked on a Euro basis from 1.0 times
cost as of June 30, 2008 to 0.7 times as of September 30, 2008, and

the related foreign currency exchange contract. Including the impact
of foreign currency translation, the KION investment was marked on a U.S.
dollar basis from 1.0 times to 0.8 times as of September 30, 2008;

·

A decrease of $45.2 million in the value of the investment in Capmark
Financial Group Inc. (Capmark), which was marked from 1.1 times cost as of
June 30, 2008 to 0.8 times as of September 30, 2008;

·

A decrease of $44.6 million in the value of the investment in
Alliance Boots GmbH (Boots), which related entirely to the impact of the
change in the exchange rate from British pounds sterling to U.S. dollars
during the quarter ended September 30, 2008;

·

A net decrease of $32.5 million in the value of the convertible
preferred stock investment in Orient Corporation (Orico) and the related
foreign currency exchange contract;

·

A decrease of $25.5 million in the value of a fixed income
investment;

·

A decrease of $21.2 million in the value of the investment in The
Nielsen Company, B.V. (Nielsen), which was marked from 1.2 times cost as of
June 30, 2008 to 1.1 times as of September 30, 2008; and

·

A net increase of $21.4 million in the value of the investment in
PagesJaunes Groupe S.A. (PagesJaunes), based on a market quotation on a
U.S. dollar basis and the related foreign currency exchange contract.

Net realized loss on investments and foreign currency was $19.7
million. The net realized loss was primarily comprised of $2.8 million from
the sale of opportunistic investments in public equities and derivative
instruments and $17.9 million from the sale of investments by Strategic
Capital Institutional Fund, Ltd. (SCF); and

·

The net decrease in net assets resulting from operations was $695.9
million and KPEs total return was (15.3) percent during the quarter.

Operating results of KPE for the nine months ended September 30,
2008 are highlighted as follows:

·

Net unrealized depreciation on investments and foreign currency
transactions was $999.5 million. The
most significant changes in the unrealized fair value of investments from December 31,
2007 to September 30, 2008 were:

·

A net decrease of $154.2 million in the value of the investment in
PagesJaunes, based on a market quotation on a U.S. dollar basis and the
related foreign currency exchange contract;

·

A decrease of $156.9 million in the value of the convertible senior
note investment in Sun;

2

·

A net decrease of $145.1 million in the value of the investment in
ProSieben, which was marked on a Euro basis from 0.7 times cost as of
December 31, 2007 to 0.1 times as of September 30, 2008, and the
related foreign currency exchange contract. Including the impact of foreign
currency translation, the ProSieben investment was marked on a U.S. dollar
basis from 0.8 times to 0.1 times as of September 30, 2008;

·

A decrease of $118.4 million in the value of the investment in ACTS,
which was marked on both a Canadian dollar and U.S. dollar basis from 1.0
times cost as of December 31, 2007 to nil as of September 30, 2008;

·

A net decrease of $93.3 million in the value of the investment in
NXP, which was marked on a U.S. dollar basis from 0.9 times cost as of
December 31, 2007 to 0.5 times as of September 30, 2008, and the
related foreign currency exchange contract;

·

A decrease of $75.1 million in the value of the investment in
Capmark, which was marked from 1.3 times cost as of December 31, 2007 to
0.8 times as of September 30, 2008;

·

A decrease of $62.1 million in the value of the investment in Legrand
Holdings S.A., based on a market quotation on a U.S. dollar basis;

·

A net decrease of $41.2 million in the value of the investment in
KION, which was marked on a Euro basis from 1.0 times as of December 31,
2007 to 0.7 times as of September 30, 2008, and the related foreign
currency exchange contract. Including foreign currency, the KION investment was
marked on a U.S. dollar basis from 1.1 times to 0.8 times as of
September 30, 2008;

·

A decrease of $41.9 million in the value of the investment in Boots,
which related entirely to the impact of the change in the exchange rate from
British pounds sterling to U.S. dollars during the nine months ended
September 30, 2008;

·

A decrease of $37.8 million in the value of a fixed income
investment;

·

A net decrease of $37.2 million in the value of the convertible
preferred stock investment in Orico and the related foreign currency exchange
contract; and

·

An increase of $21.2 million in the value of the investment in
Nielsen, which was marked from 1.0 times cost as of December 31, 2007 to
1.1 times as of September 30, 2008.

Net realized loss on investments and foreign currency was $58.2
million. The net realized loss was primarily comprised of $29.1 million from
the sale of opportunistic investments in public equities and related
derivative instruments, $25.2 million from the sale of investments by SCF and
$23.5 million from the secondary sales of investments in limited partner
interests of the KKR 2006 Fund and the KKR Millennium Fund, offset by
realized gains of $16.0 million from the

3

sale of Demag Holdings, S.à r.l., the partial sale of security
holdings in Rockwood Holdings, Inc. and the final disposition of KSL
Holdings  La Costa by KKRs private equity funds; and

·

The net decrease in net assets resulting from operations was $1,124.5
million and KPEs total return was (22.6) percent during the nine months
ended September 30, 2008.

Investments

KPE invests
its capital as the sole limited partner of KKR PEI Investments, L.P. (the Investment
Partnership). As of September 30,
2008, the fair value of the Investment Partnerships portfolio of private
equity investments, net of related financing, and opportunistic investments was
$4,313.9 million, which consisted of:

·Investments of
$1,557.8 million in the following KKR private equity funds:

·KKR 2006 Fund
L.P.

·KKR Millennium
Fund L.P.

·KKR European
Fund, Limited Partnership

·KKR European
Fund II, Limited Partnership

·KKR Asian Fund,
L.P.

·KKR European
Fund III, Limited Partnership

·Co-investments
of $2,149.8 million in the following portfolio companies of KKRs private
equity funds:

·Alliance Boots
GmbH

·Biomet, Inc.

·Capmark
Financial Group Inc.

·Dollar General
Corporation

·Energy Future
Holdings Corp.

·First Data
Corporation

·HCA Inc.

·KION Group GmbH

·The Nielsen
Company B.V.

·NXP B.V.

·PagesJaunes
Groupe S.A.

·ProSiebenSat. 1
Media AG

·U.S. Foodservice, Inc.

·Negotiated
equity investments of $325.0 million, net of related financing in the following
companies:

·Orient
Corporation

·Sun Microsystems, Inc.

·Aero Technical
Support & Services S.à r.l.

·Opportunistic
investments of $281.3 million as follows:

·Investments by
KKR Strategic Capital Institutional Fund, Ltd.

·Fixed income
investments

·Investments in
publicly traded securities

4

Please refer to the schedule of investments as of September 30,
2008, included elsewhere in this release, for detail of the amounts listed
above.

Subsequent to September 30, 2008, the Investment Partnership
invested an additional $30.1 million in ProSieben, which was comprised of a
$28.0 million co-investment and a $2.1 million pro rata share in KKRs private
equity funds investment.

Commitments

As of September 30, 2008, the Investment Partnerships remaining
capital commitments related to limited partner interests in KKRs private
equity funds were as follows, with amounts in thousands:

KKR 2006
Fund L.P.

$

431,987

KKR European
Fund III, Limited Partnership

291,192

KKR Asian
Fund L.P.

220,960

KKR
Millennium Fund L.P.

4,440

KKR European
Fund II, Limited Partnership

1,010

$

949,589

We expect that the unfunded capital commitments presented above will be
called over a period of several years, if not longer.

Liquidity and Capital Resources

As of September 30, 2008, the Investment Partnership had a cash
balance of $142.7 million. As of September 30, 2008, the Investment
Partnership had drawn $503.3 million of its $1.0 billion five-year senior
secured credit facility established on June 11, 2007.

Subsequent to September 30, 2008 and through October 31,
2008, the Investment Partnership received $325.2 million of proceeds from a
$351.0 million credit facility drawdown request to fund potential working
capital needs, which resulted in availability for further borrowings under the
credit facility of $171.5 million as of October 31, 2008. As a result of this drawdown and the
subsequent investment described above, the Investment Partnerships cash
balance increased, on a pro forma basis, to approximately $437.8 million as of October 31,
2008. The difference between the
proceeds received and the drawdown request was due to the amount not funded by
Lehman Commercial Paper Inc. (Lehman). Lehman, an original lender under the
credit facility with an initial aggregate $75.0 million commitment, has
declared bankruptcy and was responsible for funding an additional $37.3 million
in commitments as of October 31, 2008.
Due to Lehmans bankruptcy, we believe that Leman will not fund any part
of its remaining commitments. Therefore,
the remaining availability of $171.5 million, absent Lehmans bankruptcy, has
effectively been reduced to $134.2 million in unfunded commitments as of October 31,
2008, or from $1.0 billion to $925.0 million in total commitments, unless
Lehmans commitments are assigned to another existing or new lender. There can be no assurance that any lender
will assume any part of Lehmans commitment under the credit facility.

5

Business Environment

Global financial markets have experienced considerable declines in the
valuations of equity and debt securities, an acute contraction in the
availability of credit and the failure of a number of leading financial
institutions during the second half of fiscal 2007 and through 2008 to
date. Uncertainty regarding the value of
assets and the ability of counterparties to meet their obligations, and a lack
of transparency regarding the magnitude of risk inherent in certain
investments, spread from the residential real estate market to financial
markets generally. As a result, sources
of liquidity may be not only more difficult, but also impossible to obtain in
the current market environment.In
addition, subsequent to September 30, 2008 and through October 31,
2008, there has been a further decline in the global economy and financial
markets. Until the close of the fourth
quarter and the completion of the year-end valuation process, KPE and the
Investment Partnership will not know the exact impact of this decline on their
year-end valuations or results of operations.
The state of the financial markets may also adversely impact other
aspects of the business, operations, investments or prospects of KPE and the
Investment Partnership in ways that are not currently foreseeable.

Business Combination Transaction

As announced on July 27, 2008, KPE and KKR & Co. L.P.
have entered into an agreement providing for the acquisition of all of the
assets and assumption of all of the liabilities of KPE by KKR & Co.
L.P. U.S. Securities and Exchange
Commission review of the registration statement related to the transaction is
continuing. Subject to the satisfaction
or waiver of the conditions to closing, the parties remain committed to
completing the transaction, but do not at this point expect the transaction to
close until 2009.

Financial Report

KPE has posted its interim financial report, which includes its
unaudited financial statements and the unaudited consolidated financial
statements of the Investment Partnership, to its website (www.kkrprivateequityinvestors.com). KPE encourages investors to carefully read
these documents accompanying this news release.

Information for Investors  Teleconference
and Webcast

KPE will discuss its financial results and the status of the previously
announced business combination, described above, on a teleconference to be
broadcast live on the Internet on Monday, November 3, 2008 at 3:00 p.m.
CET (Amsterdam) / 2:00 p.m. GMT (Guernsey/London) / 9:00 a.m. EDT
(New York City). A webcast (listen only) of the teleconference can be accessed
via the Investor Relations section of KPEs website at www.kkrprivateequityinvestors.com,
as well as on KKRs website at www.kkr.com.

About KPE

KKR Private Equity Investors, L.P. (Euronext Amsterdam: KPE) is a
Guernsey limited partnership that seeks to create long-term value by
participating in private equity and opportunistic investments selected,
evaluated, structured, monitored and exited by investment professionals of
Kohlberg Kravis Roberts & Co. (KKR).
As of September 30, 2008, over 90% of KPEs $4.7 billion portfolio
was comprised of limited partner interests in six KKR private equity funds,
co-investments in 13 companies alongside the private equity funds and
negotiated equity investments. The
remainder of KPEs portfolio as of September 30, 2008 was invested in
opportunistic and temporary investments.
KPE

6

is governed by its general partners board of directors, which has a
majority of independent directors, and makes its investments as the sole
limited partner of another Guernsey limited partnership, KKR PEI Investments,
L.P.

The common units and related restricted depositary units of KPE are
subject to a number of ownership and transfer restrictions. Information concerning these ownership and
transfer restrictions is included in the Investor Relations section of KPEs
website at www.kkrprivateequityinvestors.com.

No Offering Statement

This release does not constitute an offer of securities for sale in the
United States. Securities may not be offered or sold in the United States
absent registration or an exemption from registration. Any public offering of securities to be made
in the United States will be made by means of a prospectus that may be obtained
from KPE and that will contain detailed information about KPE and management,
as well as financial statements.

Forward-Looking Statements

This release may contain certain forward-looking statements with
respect to the financial condition, results of operations, liquidity,
investments, business, net asset value and prospects of KPE and the transaction
with KKR & Co. L.P. By their
nature, forward-looking statements involve risk and uncertainty, because they
relate to events and depend on circumstances that will occur in the future, and
there are many factors that could cause actual results and developments to
differ materially from those expressed or implied by these forward-looking
statements. KPE does not undertake to
update any of these forward-looking statements.

******

7

Investor Contact:

Media Contacts:

Katherine Becher

In the U.S:

In Europe:

Investor Relations Manager

Mark Semer

Ryan OKeeffe

KKR KPE LLC

Kekst and Company

Finsbury

+1.212.659.2026

+1.212.521.4800

+44.207.251.3801

Additional Information about the
Transaction and Where to Find It

This release contains information
in respect of the proposed transaction involving KKR & Co. L.P. and
KPE. In connection with the proposed transaction, KKR & Co. L.P. has
filed with the Securities Exchange Commission (SEC) an amendment to its
existing Registration Statement on Form S-1 (file no. 333-144335) and will
be filing other documents regarding the proposed transaction with the SEC. INVESTORS AND
SECURITYHOLDERS OF KPE ARE URGED
TO READ THE REGISTRATION STATEMENTAND
OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIRENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATIONABOUT THE PROPOSED
TRANSACTION. The final prospectus contained in the registration
statement will be mailed or otherwise disseminated to the holders of KPEs
common units. Holders of KPEs common units will be able to obtain free copies
of the final prospectus (when available) and other documents filed with the SEC
by KKR & Co. L.P. through the web site maintained by the SEC at
www.sec.gov. Free copies of the final prospectus (when available) and other documents
filed with the SEC can also be obtained by directing a request to KKR& Co.
L.P., 9 W. 57th Street, Suite 4200, New York, New York 10019, Attention:
Investor Relations.